This essay is meant to provide a theoretical background and/or overview that may be required in the study of economic growth.
To begin with, growth and development are concepts which are oftentimes used rather casually and interchangeably, as dealing with changes in the real per capita income of a country. This ambiguity is made even more" serious because of the strong activist connotations of the term "development". Hence, a crucial and necessary distinction between growth and development must needs to be made. In the context of economic literature, growth is taken to mean that which one can measure, describe and try to explain. On the other hand, development, which involves the setting of goals and accompanying policies, is something one tries to achieve. Economic growth - that which we want to describe and explain and/or predict shall be referred to in the course of this paper.